This Old House: 4 Problems Home Owners can Face During Divorce
Divorces are never pleasant, and some can be downright messy. It becomes even more difficult for homeowners, especially when both parties are listed on the mortgage. You can divorce your wife, but not your responsibilities. Here are four problems homeowners may face during a divorce, and ways to get around these problems.
1. Both names are on the mortgage.
Both you and your soon to be ex are on the mortgage, and both of you have ownership of the home. If the house is not yet paid off, the two of you must decide how to approach paying off the home. Perhaps the most efficient and easiest way is to sell the house and divide the earnings between the two of you. This will leave you with enough money to purchase smaller homes separately. However, with the housing market in the condition it is in, this can be a problem; if you are unable to sell the house, or are forced to live together in the home, set your emotions aside and work to pay it off quickly so neither of you is in debt.
2. One party leaves, and the other is unable to meet the mortgage payment alone.
In this situation, the solution is similar to the one above. Try to sale the home if possible. If not, look for a room mate to help handle the bills and the mortgage until you are able to sell the home and move into a cheaper location.
3. One party can afford the house, but doesn’t want it.
In this situation, they can hold on to the house and refinance it for a lower rate mortgage. The homeowner could then rent the home out for a slight profit, and earn enough to cover the mortgage until such time as the home can be sold or totally paid off.
4. Changes in insurance policies.
Insurance premiums are often determined based on the marital status of an individual, and if that individual gets divorced, their premiums might change. In some cases, the premium might become too high and be unaffordable, while in other cases the policy might not provide enough coverage for only one party at the current rate. It helps to make sure your rate is locked in, or to consider finding a different insurance provider to suit your present circumstance.
If you find yourself in this situation, consider contacting a divorce attorney to help you through the complex circumstances. A Salt Lake City Divorce Attorney understands the difficulties that homeowners face when going through a divorce, and can help to work out a settlement that satisfies both parties as easily as possible.